Why did Justin Bieber agree to sell his music catalog for R$1 billion?

Many fans were surprised by the news that Justin bieber had sold the rights to his catalog of songs released from the beginning of his career until December 31, 2021. Not only for the amounts — more than US$ 200 million, which exceeds R$ 1 billion at the current quotation —, but also for being a young artist to make such a decision, after an offer from Hipgnosis Song Management in partnership with Blackstone Inc.

As highlighted in a text published by Rolling Stone Brazil, there is a trend these days among renowned veteran musicians who have left their musical legacies in the hands of specialist music companies. The corporations receive royalties and all other income related to those songs in lieu of the authors, who earn a huge amount, in one fell swoop, to be left to their heirs.

This seems to make sense to many of the veterans who have done this, such as bob dylan, Genesis, Neil Young, Motley Crüe, Sting, Red Hot Chili Peppers, Bruce Springsteen, between others. In the case of younger people, this can be a risky business both for companies (since it is not possible to know the legacy left by this catalogue) and for artists (who could earn even more with these works, although in the long term ). Why, then, was this deal struck?

Justin Bieber and the risks eliminated

As explained by the BBC, the decision taken by Justin bieber eliminates any risk related to your career from here. The singer could bet on maintaining the status of his career to continue profiting from the rights – he is undeniably one of the great popstars of today – or simply sell everything at once “for an astronomical sum”.

When opting for the second option, the artist can, still according to the BBC, “apply your money as you wish”. This eliminates “the risks of the future”, in case he ceases to be an artist of the same size as he is today or his songs stop playing at the current frequency.

good for both sides

The company that acquired the catalog of Justin bieber it’s not silly either. Hipgnosis is managed by Merck Mercuriadis and the executive declared that hits in music can be “more valuable than gold or oil”. He believes that the rights around the songs of Justin bieber will continue to yield for “60 or 70 years”, given that the artist’s audience is relatively young.